CALGARY,
AB, Aug. 15, 2023 /CNW/ - Enerplus Corporation
("Enerplus" or the "Company") (TSX: ERF) (NYSE: ERF) today
announced acceptance by the Toronto Stock Exchange (the "TSX") of
its notice to commence a normal course issuer bid (the
"Bid").
Pursuant to the Bid, Enerplus proposes to purchase through the
facilities of the TSX, the New York Stock Exchange ("NYSE") and/or
alternative trading systems, from time to time over the next 12
months, if considered advisable, up to 20,970,238 common shares,
being 10% of the public float of Enerplus (within the meaning under
the TSX rules) as of August 9,
2023.
Enerplus believes that, from time to time, the market price of
its common shares trade in a price range that does not adequately
reflect their underlying value. Accordingly, Enerplus has concluded
that the repurchase of common shares for cancellation may represent
an attractive investment that will increase the proportionate
interest in the Company of, and be advantageous to, all of the
Company's remaining shareholders.
The Bid will be effected in accordance with the TSX's normal
course issuer bid rules and/or Rule 10b-18 under the U.S. Securities Exchange Act
of 1934, as amended, which contain restrictions on the number
of common shares that may be purchased on a single day, subject to
certain exceptions for block purchases, based on the average daily
trading volumes of Enerplus' common shares on the applicable
exchange. Subject to exceptions for block purchases, Enerplus will
limit daily purchases of common shares on the TSX in connection
with the Bid to no more than 25% (150,260 common shares) of the
average daily trading volume of the common shares on the TSX
(601,041 common shares) during any trading day. Common shares
purchased under the Bid will be cancelled.
Enerplus is authorized to make purchases during the period of
August 17, 2023 to August 16, 2024 or until such earlier time as the
Bid is completed or terminated at the option of Enerplus. Purchases
under the Bid will be made through open market purchases at market
price, as well as by other means as may be permitted by applicable
securities regulatory authorities, including private agreements.
Any purchases made by private agreement under an issuer bid
exemption order issued by a securities regulatory authority will be
at a discount to the prevailing market price as provided in any
exemption order.
As previously announced on June 6,
2023, Enerplus obtained an exemption order from the Canadian
securities regulators which permits Enerplus to purchase, pursuant
to the Bid, up to 10% of its public float of common shares through
the NYSE and other US-based trading systems. Absent this exemptive
relief, Enerplus' purchases under the Bid on markets other
than the TSX would be limited to not more than 5% of its
outstanding common shares over the twelve-month period. The
exemptive relief is conditional upon, among other things, purchases
being made in compliance with applicable US rules and National
Instrument 23-101-Trading Rules in Canada, and at a price not higher than the
market price at the time of purchase. The aggregate number of
common shares purchased by Enerplus over any exchange or market
over the twelve-month period of the Bid may not exceed 10% of
the public float as specified in Enerplus' notice accepted by the
TSX, being 20,970,238 common shares.
Enerplus has entered into an automatic purchase plan prior to
commencement of any purchases under the Bid with a broker which
will enable Enerplus to provide standard instructions and purchase
common shares on the open market during self-imposed blackout
periods. Outside of these black-out periods, common shares may be
purchased in accordance with management's discretion.
Under its prior normal course issuer bid, Enerplus repurchased
an aggregate of 23,140,231 common shares at a weighted-average
price of US$15.84 per share,
excluding brokerage fees, which represents all of the common shares
Enerplus sought and obtained approval to purchase under the prior
normal course issuer bid. Purchases were made on the open
market.
About Enerplus
Enerplus is an independent North American exploration and
production company focused on creating long-term value for its
shareholders through a disciplined capital allocation strategy and
a commitment to safe, responsible operations.
Forward-Looking
Statements
Certain statements and other information included in this
press release constitute "forward-looking information" within the
meaning of applicable Canadian securities legislation or constitute
"forward-looking statements" within the meaning of applicable U.S.
securities legislation (collectively, the "forward-looking
statements"). All statements in this press release, other than
those relating to historical information or current conditions, are
forward-looking statements, including, but not limited
to, Enerplus' intention to commence a Bid and the timing,
methods and quantity of any purchases of common shares under the
Bid.
These forward-looking statements are subject to a number of
risks and uncertainties, many of which are beyond our control,
which could cause actual results to differ materially from such
forward-looking statements. All of the forward-looking statements
are qualified by the assumptions that are stated or inherent in
such forward-looking statements, including the availability of cash
for repurchases of common shares under the Bid, the existence of
alternative uses for Enerplus' cash resources and compliance with
applicable laws and regulations pertaining to a Bid. Although
Enerplus believes that these assumptions are reasonable, this list
is not exhaustive of the factors that may affect any of the
forward-looking statements and the reader should not place an undue
reliance on these assumptions and such forward-looking
statements.
Events or circumstances that could cause actual results to
differ materially from those in the forward-looking statements,
include, but are not limited to: general economic, market and
business conditions, and other risk factors detailed from time to
time in Enerplus reports filed with the Canadian securities
regulators and the Securities and Exchange Commission in
the United States.
Enerplus disclaims any intention or obligation to update or
revise any forward-looking statements in this press release as a
result of new information or future events, except as may be
required under applicable U.S. federal securities laws or
applicable Canadian securities legislation.
SOURCE Enerplus Corporation